Educate your client and never encourage him to cheat the government or evade taxes. This is the mantra that has been practiced, followed and mastered by Zafarullah Sattar Khan. He says that tax practice requires patience and skill. One can be successful if he knows that he is here for a long overhaul therefore creation of goodwill is important. And this can come only with ethics and not by short cuts. He has led his words through example.
Zafarullah Sattar Khan hailing from Shivamogga in Karnataka is Chairman of Karnataka Taxpayers Association. A well-known social worker and human right activist is providing tax consultancy for more than 20 years and has been quite vocal for GST Reforms. He has been raising his voice for the same through various forums
CA Kalpak Kaplash had an opportunity to interview him where they both discussed on wide range of issues.
Tax Pyramid Interview with Zafarullah Sattar Khan
Tax Pyramid: First of all, would like to thank you for taking out time and interacting with us.
I am happy that the team of Tax Pyramid has approached me for this interview. Gives me an opportunity to share my views and experience with your readers and also interact with society through your mode.
Tax Pyramid: This month we have celebrated the 4thAnniversary of GST on 01stJuly 2021. How do you see the journey so far of the “Goods and Service Tax” in bringing change in the Indian taxation system?
Kalpak its true that we just celebrated the GST Day. But it is very much difficult to say “Happy GST Day”. If GST was launched as was promised, it would have definitely boosted the Indian taxation system. But at present there is lot of confusion among taxpayers regarding the GST Act. Still people are not aware of complete taxation of GST. I think the practice of press release regarding change in GST provisions every other day must stop. Instead of that, GST council should make an effort to explain to the stakeholders once stabilized GST provisions to bring real change in the Indian taxation system.
Tax Pyramid: Who better to ask this question than a successful tax practitioner with an experience of more than 20 years in VAT and then GST, that how different the tax practice has been for a tax practitioner in the post-GST regime compared to the pre-GST regime?
When we were practicing with Sales Tax Act, there was an easy flow for a practitioner of filing returns manually, comparative easy tax structure and had an ease of communication with the tax officers.
Earlier even VAT was also introduced to avoid cascading on taxes and even that time it was promised that this would be the one tax structure which would apply to whole of India. But it was not introduced like that and there were different taxes in different state.
Meanwhile we tax practitioners were about to learn the online system of filing returns in VAT regime, which took years and lot of efforts to learn, when the taxpayers have finally started finding VAT system comfortable, GST was imposed.
Look even after 4 years, taxpayers are still finding it difficult in GST Regime, they lost the communication with tax officers, they don’t know whom to contact for their GST related problems, GST portal has failed to address their issues, and then it is difficult to take note of so many updates with so many notifications, circulars, & even press release on GST being release so frequently.
There should be an easy communication channel with the tax officials, which was available in pre-GST regime, but not in post-GST regime.
Tax Pyramid: You have been working for GST reforms for quite a long time, raising your voice on various platforms. Several representations have been made from you to the ministry and various tax authorities. Even Tax Pyramid has been raising these issues regularly on various forums. What are the major changes you seek in the GST System as in its present form?
Yes, we have been working for GST reforms for the basic purpose of simplification of GST provision. The benefits of GST can reach full potential. To communicate the problems being faced in GST to the authorities.
We have even attended All India Protest for GST Reforms in January 2021, where a Common representation was filed from all across India on same day, same time to the ministry and tax authorities. We can say we have got some success but not fully.
- First & foremost, as a reform we request a user-friendly GST Portal. It should be updated as per latest GST law provisions and also able to withstand the huge volume of GST transactions.
- Request for a One-page GST returns. The lengthy GST returns should be concise. Bankers demand to furnish the GST filed returns, when the taxpayers intend to take print out there is loss of papers, because GST returns are not in one page. It is in horizontal mode and lot of space is wasted in the return print out, if it is prepared in Vertical mode it will help in reducing the space. Then it will be printed in one page like previous returns in VAT Regime.
- Need to reduce the late fees from July 2017 to till date, In the 43rd GST Council meeting the late fees was reduced to Rs 500 & 1000, but it is only for those taxpayers who will file their returns up to 31st Aug 2021. This reduced fee should be applicable in all cases.
- Allow revocation facilities for Cancelled GST Registration. After 90 days taxpayer is not allowed to file application for revocation of cancelled GST registration. It should be allowed for all the taxpayers who completes their filing of all pending returns.
- Allow to revise the filed returns
- Stop recovery of penalty u/s 164(4) of GST Act, when there is no monthly GSTR 3 returns as per the GST Act.
Tax Pyramid: There are a lot of young aspirants who are looking at GST as a future career. How much scope do you see in GST practice today as a career choice?
To have a good prospectus future in this area, one requires both skill in terms of knowledge and patience.
GST would lead to raise GDP by 2% to 2.5% hence there will be job creation of 2.5 million for every 1% growth, and like wise this is a good future career for the youngsters.
If anyone chooses GST practice as a career, I would say it is a good decision that person has made.
Tax Pyramid: To be a successful practitioner, what would be your success mantra for our young tax professionals. We are asking you here your trade secret to be successful.
After completion of my article ship, when I started my practice initially, there was an instance when I received a call from a retailer who told me that some tax officials have visited his shop and he is finding difficult to give answer. He asked me to visit as his tax representative.
When I visited, tax officials asked me to pay a certain amount as penalty & taxes and they would leave. I asked them on what basis the penalty & taxes are needed to be paid. This is the question which gave me the mantra for my success of 19 years of Practice.
After this question they checked everything including the stock on quantity basis till late night and again started from morning, but did not found anything suspicious to ask penalty and taxes.
The mantra is to educate your client, taxpayers about the taxation and penalties, make him to pay all his taxes within time, do not encourage him to cheat the Government.
If Tax practitioners start their profession with these ethics, I assure they will succeed, no matter initially one may get few clients, but do not cheat the profession. Success will follow.
Tax Pyramid: You have been involved in a lot of social welfare activities. You have also been actively involved in helping out people in these tough times of corona by way of the distribution of foods and medicines. What were the difficulties faced by you in carrying out this social welfare activity especially in pandemics? How satisfying it is on a personal basis when you help out people who are actually in need?
Yes, from last 18 years I am involved is social welfare activities, for which I have been recognized from “Bharat Vikas Ratan Award” by the economics for health and Education Growth- New Delhi in the year 2012.
If the district authorities allow all active NGO’s into the relief work, there shall be good work. They don’t issue the passes to the active NGO’s. It depends upon the politics too, if you have political links, you will get the passes otherwise not. For the welfare meetings, authorities calls those NGO who are mostly inactive, and regarding active NGO’s they don’t even bother, this is the pain that I feel.
The pandemics relief should be free from the politics. It is for social cause and for the general people. The active NGO’s who are willing to work should be allowed to do work freely otherwise it is difficult to finish the work with good result.
We have served ready to eat food at the hospitals where the relatives, attenders, of the patients find difficulty in arranging food. Due to complete lockdown, we went there ourselves & provided ready to eat food there. This gave us huge satisfaction that we worked for the people who were in need.
Tax Pyramid: How do you manage time between your role as a ‘tax practitioner’ and role as a ‘social worker? And how do you see yourself now, more as a ‘tax practitioner’ or more of a ‘social worker?
I am completing my official work within the time frame, ensure my customers fulfill all the compliances within the due dates. This gives me some time to do my social work, here in Shivamogga.
Most of the trader open their shop between 10am to 11am, I approach the taxpayers to start their business from 9 am, which also help them to manage time for them & for me too.
There is no major difference a tax practitioner and a social worker. I look myself as Social worker, both the duties are meant for the Nation Development after all.
From tax practice I am getting some remuneration, and from social worker I am getting peace of mind & soul.
Moreover, I am recognized by social worker rather than as a tax-practitioners in my area.
Tax Pyramid: Thank you once again Sir, for speaking your heart out on all of these topics. On behalf of the whole team of Tax Pyramid, I wish you the best success in all your future efforts.
Your Welcome. I also wish you and your Tax Pyramid team very best of luck for future. Keep doing the good work. Wish you success in your efforts to be supporter of nation building and support taxpayers.
